Asia-Pacific’s leading stock exchanges are erecting barriers against an expanding corporate trend: transforming listed companies into digital asset treasury (DAT) vehicles that hoard cryptocurrencies as primary reserves.
Firms exploring digital asset strategies now face heightened scrutiny and growing pressure, leaving investors uncertain about future trends.
Crypto Treasury Boom Meets Resistance from Leading Stock Markets
According to Bloomberg, the Hong Kong Exchanges & Clearing Ltd. (HKEX) has firmly opposed digital asset treasury conversions, blocking applications from at least five companies. The exchange’s rules prohibit excessive holdings in liquid assets. An HKEX spokesperson told Bloomberg that the framework,
“Ensures that the businesses and operations of all applicants seeking to list, as well as those already listed, are viable and sustainable, and of substance.”
India’s leading exchange shares this tough stance. The Bombay Stock Exchange denied Jetking Infotrain’s attempt to list shares tied to crypto investment plans.
In Australia, the ASX Ltd. enforces a strict cap, barring listed entities from allocating more than 50% of their balance sheets to cash or equivalents. This threshold renders DAT models untenable.
Nonetheless, Japan stands out as an exception, embracing DATs with proper disclosure requirements. The country hosts 14 listed Bitcoin buyers, including Metaplanet Inc., the world’s fourth-largest, with $3.3 billion in holdings.
This openness has accelerated adoption. However, global index provider MSCI Inc. is weighing exclusions for firms with over 50% crypto assets, viewing them more as investment funds. Such a move could slash passive inflows.
High Stakes and Mounting Risks for DAT Companies
The increased friction comes as the DAT trend continues to take hold worldwide. These companies now hold over $100 billion in Bitcoin, Ethereum, and Solana. More than 1 million Bitcoins reside on corporate balance sheets, led by Strategy (formerly MicroStrategy), which holds 640,418 BTC.
Yet, recent market turmoil has battered the DAT sector, increasing doubts about the long-term prospects of these business models. Falling mNAVs and volatility in stock prices raise concerns. Furthermore, many rely on issuing new shares to fund crypto purchases, creating dilution risks.
The risk of manipulation also remains, as evidenced by the QMMM case. BeInCrypto reported that the firm’s stock surged after a major crypto treasury announcement, only to crash when US regulators alleged market rigging.
These dramatic episodes have fueled calls for tighter controls. Binance founder Changpeng Zhao (CZ) urged mandatory third-party audits to prevent the emergence of new “runaway MicroStrategy” imitators.
Thus, as regulations tighten across Asia’s largest markets, future developments will reveal whether resistance from regulators will halt the expansion of digital asset treasury models — or simply force them to evolve under stricter oversight.
